Last updated on 2024年7月22日

How do you communicate the limitations of ERP customization to stakeholders without causing conflict?

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Communicating the limitations of an Enterprise Resource Planning (ERP) system's customization can be a delicate task. ERP systems are complex software platforms used to manage and integrate important parts of a business's operations, including inventory, finance, and human resources. However, they are not without their constraints. When stakeholders envision limitless possibilities, your role is to set realistic expectations without dampening enthusiasm or inciting conflict. This requires a strategic approach, balancing transparency with tactful communication.

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Amit Shah

Construction ERP Professional | Budgeting & Budget Based Controls, Billing, Material Mgmt, Procurement, Accounting |…
Kumaran MTV

Supply Chain Leader & Digital Transformation Specialist | LinkedIn 5X Top Voice | 27+ Years in Retail | Expert in…

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1 ERP Basics

Understanding the core functions and capabilities of an ERP system is essential before diving into customization talks. An ERP system is like the central nervous system of a company, integrating various departments to streamline processes and improve data visibility. It's important to recognize that while ERPs are powerful, they're designed to meet the general needs of businesses and may not fit every unique process or requirement. Emphasize the strengths of the ERP and how it can benefit the organization as a whole while also being upfront about its standardization.

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Amit Shah

Construction ERP Professional | Budgeting & Budget Based Controls, Billing, Material Mgmt, Procurement, Accounting | SAP PS, MM, CPM | BI Dashboards | | Implementation | Integration
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My expereince says that any organisation considering ERP, should not insist for customisation for first year. Specially if opting for SAP or any well established ERP is opted. Users will need time to understand standard functionalities first. Then only they can realise wether customisation is required or not. Before customisation, ask what objectives can be achieved if customisation is done. Is that make users life easy or more complex? Will organisation can achieve any benefit from that customisation or not ? Is this must required amd unavoidable ?

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Kumaran MTV

Supply Chain Leader & Digital Transformation Specialist | LinkedIn 5X Top Voice | 27+ Years in Retail | Expert in Innovative Tech Solutions, ERP, WMS, Ecommerce and Process Optimization | Driving Growth & Efficiency
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Communicating the limitations of ERP customization to stakeholders is crucial for successful implementation. Here are some effective tips - Be Transparent: Clearly outline what the ERP system can and cannot accomplish to build trust. - Highlight Benefits: Stress the advantages of utilizing standard features for quicker implementation and cost-effectiveness. -Show Data: Back your points with data and case studies to illustrate the risks of excessive customization -Suggest Alternatives: Present practical workarounds that meet business needs without extensive customization -Listen Actively: Empathetically address stakeholder concerns to foster understanding and collaboration

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2 Customization Costs

When discussing customization, one of the most significant factors to consider is cost. Customizing an ERP system can be expensive, not just in terms of initial development but also for ongoing maintenance and future upgrades. Make sure stakeholders understand that every customization adds complexity and potential costs. It's like tailoring a suit; the more alterations you make, the more time and money it will require to fit perfectly.

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Amit Shah

Construction ERP Professional | Budgeting & Budget Based Controls, Billing, Material Mgmt, Procurement, Accounting | SAP PS, MM, CPM | BI Dashboards | | Implementation | Integration
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Biggest issue in customisation is that as this is developed for specifically for our requirement it would have exta cost of development. Moreover it will be difficult to maintain as if this rare piece of development. Also there is high risk if the main developer of ERP vendor will leave the company and proper knowledge transfer is not happrned.

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3 Future Proofing

Another critical aspect to communicate is how customization impacts the future scalability and upgradeability of the ERP system. Customizations can complicate applying updates and integrating new features, which might lead to additional costs or disruptions in the future. Explain that it's like adding custom parts to a car; it may run well now, but it could be harder to repair or upgrade down the line.

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Ishwar M ??

Founder @GeminateCS ?? ?? | Helping Businesses in Digital Transformation | Entrepreneur | Enterprise Architect | ERP | CRM | Odoo | AI | Android | IOS | Website | E-Commerce Consultant
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To communicate the limitations of ERP customization to stakeholders without causing conflict, focus on future proofing. ???? For example, if stakeholders want extensive custom features, explain that while some requests might not be feasible now, future updates and enhancements can address their needs. ????? Emphasize that balancing current limitations with long-term benefits ensures the system remains adaptable and sustainable. ???? This approach shows you’re committed to their goals while managing expectations for a future-focused, flexible solution. ???

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4 Business Impact

It's also vital to discuss how ERP customization can affect business operations. Customization can lead to longer implementation times and may introduce new risks if not managed properly. Explain that while tailoring the system to specific needs can offer advantages, it is important to weigh these against the potential for operational delays and the need for additional training for users.

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Amit Shah

Construction ERP Professional | Budgeting & Budget Based Controls, Billing, Material Mgmt, Procurement, Accounting | SAP PS, MM, CPM | BI Dashboards | | Implementation | Integration
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Standardised ERP will take lesser time in implemetation as this are well tested earlier in market. However customised ERP there is always risk of missing test scenario and hence more risk iteration of testing due to bug while UAT. This will result delay in implemenation and increase in cost if resource base contract. Also it will consume more time of users and developers and testers

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5 Stakeholder Alignment

Achieving alignment among stakeholders is crucial when setting expectations for ERP customization. Ensure that all parties understand the strategic goals of the ERP and how customization aligns with these objectives. It's like planning a group trip; everyone needs to agree on the destination and the route to ensure a smooth journey. This alignment helps in prioritizing customizations that offer the most value.

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6 Communication Strategy

Lastly, your communication strategy should be clear, consistent, and ongoing. Use regular meetings, clear documentation, and real-world examples to illustrate the implications of customization. It's like guiding a tour; you need to keep everyone informed about what to expect, the potential roadblocks, and how you'll navigate them together. This approach helps in managing expectations and reduces the likelihood of conflict.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Amit Shah

Construction ERP Professional | Budgeting & Budget Based Controls, Billing, Material Mgmt, Procurement, Accounting | SAP PS, MM, CPM | BI Dashboards | | Implementation | Integration
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It is very essential that each proposed customisation process of erp is communicated to all stakeholders through minutes of meetings. Also each stakeholders are involved in testing and communicated @ testing results. Collaboration and communication is very essential if erp is customised. And management shall be make aware to bear time consumed in joint testing and discussion.

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How do you communicate the limitations of ERP customization to stakeholders without causing conflict?

1

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3

4

5

6

7

1 ERP Basics

2 Customization Costs

3 Future Proofing

4 Business Impact

5 Stakeholder Alignment

6 Communication Strategy

7 Here’s what else to consider

Enterprise Resource Planning (ERP)

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How do you communicate the limitations of ERP customization to stakeholders without causing conflict?

1

2

3

4

5

6

7

1 ERP Basics

2 Customization Costs

3 Future Proofing

4 Business Impact

5 Stakeholder Alignment

6 Communication Strategy

7 Here’s what else to consider

Enterprise Resource Planning (ERP)

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